How Do You Trade Indices?

Trading index CFDs gives investors the opportunity to speculate on the price movement of an index without actually owning any of the stocks that make up the index. Traders can go both LONG (a buy trade) and SHORT (a sell trade) when using CFDs to trade indices – this is one of the biggest benefits of trading indices via a CFD trading platform. Find out more about the advantages of CFD trading versus traditional share trading here.

Example:

  • You believe that the Australian 200 Index will rise, so you place a ‘BUY’ trade on our trading platform.
  • 3 hours later the value of the Aussie 200 Index has risen. You will make a profit for every point that the Aussie 200 index goes up in value.
  • However, if the Aussie 200 index declines in value, you will make a loss for every point that the index moves against you.
  • Our trading platform (or App) will tell how much profit or loss you are making in real-time throughout the day and night.
Trader Happy at a desk

What Are The Advantages of Index Trading using CFDs?

  • Speculate on the price movement of rising and falling markets
  • Leverage so you can trade a position with a low margin %
  • Access a wide range of markets from one trading platform
  • An array of trading opportunities
  • CFDs mirror the underlying security
  • Read more about the benefits of trading indices via CFDs